WHAT EXACTLY THE TERM “INNOVATION” MEANS FROM THE POINT OF VIEW OF THE INFORMATION TECHNOLOGIES In the recent years the term “INNOVATION” is being used more and more often in each one business and field, however, what exactly is “INNOVATION” and how can we determine whether a product, service or process is innovative or not? Many experts from various fields give us different definitions of “INNOVATION”. Depending on the fields, abilities, and skills of those experts, the term changes and gives us various explanations but the truth is that until this moment there is not an accurate and clear explanation of “INNOVATION”. Nevertheless, every time we use the word “INNOVATION” each of us imagines something new and unique, something which has not been made or seen before. In this issue, I will try to make the term “INNOVATION” clear from my point of view and from the point of view of the IT business. INNOVATION – Innovatory (newly created, something which did not exist before in a specific state) product, goods, service or process which has been created with to deal with a specific task, to optimize or to entirely replace an existing product or service. There are two main approaches in innovations, which are divided according to their purpose and idea: -Innovative solutions created with the purpose to develop, improve or optimize already existing processes, products or services. In this approach, the innovative solution is based on an already existing product or service and its aim is to upgrade and optimize rather than radically change the “core” of its prototype. However, in many cases, entire implementation on specific innovation has a drastic influence on the structure of the current process or product. That is why most often we use various software solutions and products. – Innovative solutions created with the purpose to solve a specific problem or task which have not been solved before or entirely replace an already existing product or service. The main goal of this approach is to efficiently increase and optimize the final result. Based on my current experiences, I can claim that one of the most important fields which contribute to innovative solutions and approaches is the IT business. Information technologies have been established, their main purpose has been to increase the efficiency and better each aspect of society’s life and work. Often businesses cannot establish the need for implementation of innovative practices and approaches. That is why well working and developing companies do not pay enough attention to increasing their effectiveness but they rather focus on their existing practices and processes. According to many surveys, which are based on studies of the competitive environment, this work model is completely inefficient in long-term use. That is why competitiveness is one of the most important aspects of any business that would like to establish a long-term position on the market. A company’s competitiveness depends on the company’s efficiency. At the same time business’ efficiency, through the eyes of the dynamic and quickly developing the world in we live in, can significantly increase their competitiveness with the implementation of innovative approaches and software solutions. This can be done after detailed business analysis and research on business needs. The New Generation Software Solution team spends a big part of the company’s resources for the design and implementation of good innovative products and services in our clients’ and partners’ businesses. Our work makes us happy because it allows us to observe all the positive things with which our job contributes to the company and business development.